Paytm Shares Jump 10% Intraday On Heavy Trading Volumes

Paytm Shares Jump 10% Intraday On Heavy Trading Volumes

SUMMARY

Shares of Paytm jumped almost 10% during the intraday trading today to INR 687.3 apiece on the BSE

The rally came after the GST Council failed to reach a decision on imposing a 18% GST on payment aggregators on UPI transactions under INR 2,000

This comes at a time when Paytm is looking to reapply for a PA licence after getting the Centre’s nod to invest INR 50 Cr in its payments arm

Shares of Paytm jumped almost 10% during the intraday trading today (September 10) to INR 687.3 apiece on the BSE amid strong trading volumes and ambiguity around the introduction of GST on small digital payments.

However, the stock shed some of the gains and was trading 4.6% higher at INR 657 apiece on the BSE at 1:39 PM.

By the time of publishing the story, nearly 3 Cr Paytm shares had cumulatively changed hands on the NSE and BSE as compared to the 20-day average volume of 90.3 Lakh.

The rally in Paytm share prices could also have been fueled by the GST Council’s failure to reach a decision on imposing a 18% GST on payment aggregators on UPI transactions under INR 2,000. Reports suggest that the matter will be referred to a fitment committee.

It is pertinent to note that payment aggregators such as Paytm, Razorpay, Cashfree, Pine Labs, BillDesk and CCAvenue charge merchants for processing digital transactions under INR 2,000.

Some of these players have reportedly received GST demand orders from authorities on the fee they collected.

This comes at a time when Paytm has received approval from the Centre, the finance ministry and the department of financial services to invest INR 50 Cr in its payments arm, Paytm Payments Bank.

The company is now looking to apply for a payment aggregator licence with the Reserve Bank of India.

Paytm incorporated Paytm Payment Services to secure a PA licence. While the company initially tried to get the PA licence in 2020, the RBI directed it to resubmit the application to ensure compliance with the FDI rules. 

The Vijay Shekhar Sharma-led company saw its consolidated net loss widen 134% year-on-year to INR 840.1 Cr in the June quarter (Q1) of the financial year 2024-25 (FY25) as compared to INR 358.4 Cr in the year ago-period.

Revenue from operations declined 36% in Q1 FY25 to INR 1,502 Cr from INR 2,342 Cr in the corresponding quarter last year.

Despite mounting losses, the stock has jumped 27% in the last month and surged over 77% in the past six months.

 

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Paytm Shares Jump 10% Intraday On Heavy Trading Volumes-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Paytm Shares Jump 10% Intraday On Heavy Trading Volumes-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Paytm Shares Jump 10% Intraday On Heavy Trading Volumes-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Paytm Shares Jump 10% Intraday On Heavy Trading Volumes-Inc42 Media
Paytm Shares Jump 10% Intraday On Heavy Trading Volumes-Inc42 Media
You’re in Good company